How to start the registration of an RTM company

How to establish the rights to manage company: an RTM company, or right to manage company, is a right that residents of apartments or flats can request if they feel that the landlord of their apartment or flat is managing their home in a way that doesn't provide the services required well, or costs too much. Residents can apply to transfer the management of their home from the landlord to a company of their own choosing - a right to manage company, or RTM.

This right to manage company incorporation is possible thanks to the Commonhold and Leasehold Reform Act of 2002 and gives residents the right to manage their own property and be responsible for the management of their own home. In order to register a right to manage company, you need to provide specific information, and the process can be complex and time consuming so it's recommended that you do so with legal advice and support.

To register an RTM you need to provide the address of the property. The property must be self-contained and be made up of a minimum of two flats or abodes, but no more than four, with at least two thirds of the residents being qualifying tenants - by which we mean a leaseholder, with a lease granted for an original term of 21 years or more.

The building can be part commercial, but the area of the building that is non-residential cannot exceed 25% of the total floor area. One flat must be occupied by the freeholder and it must be their principal home - or usual residence - for a minimum of 12 months. Individual leaseholders will not be responsible for managing the property - the RTM will, and this is made up of 'officers', usually the tenants, and must include a chairman, directors and a secretary. Note that the landlord also has the right to be the part of this body of officers.

Notice must be given in writing to state that the RTM intends to take over the management, and what that entails. The information you also need is: -

1. The registered address of any landlords, leaseholders and freeholders
2. Details of commercial or non-residential use within the building
3. Current management arrangements
4. Insurance for the building
5. Current maintenance commitments and contracts in place
6. Services to and for the building
7. The state of repair
8. Copies of recent surveys

With this information gathered you can begin the process of notification of the RTM process. if you wish to establish an RTM company, please get in touch with us, and we can open a new RTM association online.